30 | nzdairy DAIRY PEOPLE » Dairy Farms NZ • from page 28 Sharemilking a ‘good model to be promoted’ The Effluent pond on Miro Farm has been synthetically lined and is about to be used again for storage. FOR ALL YOUR ELECTRICAL NEEDS Dairy Farms NZ ELECTRICAL YOUR TRUSTED PROUD TO SUPPORT EXPERTS Ph 03 308 8049 But the return on those three and a half cows is very appealing, especially with something like an $8.00 or $9.00 milk price — though they do carry a bit more risk if the milk price drops as it has done in the past.” Craig points out that as a corporate farm owner DFNZ offers their sharemilkers greater certainty around the continuity of sharemilking agreement. “The typical term for a sharemilking agreement is three years and in a family farm ownership situation there is always the risk that a son or daughter may decide to return to the family farm. “Through no fault of their own the sharemilker has to get all their cows together, pick up the family and move to a new farm, often in a new community and the kids have to go to new schools. As a corporate company we don’t have family that will return to the farm. We still have a three year contract but if a sharemilker is doing a good job they are protected from the risk of being bereft of a farm and having no where to place their cows, which is their major investment.” That certainty of engagement affords the sharemilker more confidence, with year four vastly more profitable than year one on a new farm when the sharemiker has to pay the cost of transporting his cows, relocating his family, learning the farm and new staff, and finding tradies. “That steady relationship across the whole business is really valuable for all parties.” Craig says DFNZ has good corporate processes and high expectations around health and safety and environmental outcomes. “If the sharemilkers are prepared to get on board with that then we have a great relationship ahead of us. It’s a good model to be promoted.”
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